Updated July 6, 2021.
Detailed Estimates of Rockbox Fitness Franchise Costs Based on Item 7 (Estimated Initial Investment) of Rockbox Fitness’ 2021 Franchise Disclosure Document
1. Initial Franchise Fee: $49,900
- As of the date of the current Disclosure Document, the Initial Franchise Fee is $49,900 for a Franchised Business. You must pay the Initial Franchise Fee in full upon signing the Franchise Agreement.
2. Rent and Security Deposit: $6,500 to $30,000
- Rockbox Fitness requires that you manage and operate your Studio from an approved facility. The low end of this estimate assumes that you will only have to pay a security deposit at the time of signing your lease.
3. Utilities: $500 to $1,000
- To secure the appropriate utilities for the operation of your Studio, including electricity, water, sewer, and Internet access, you will be required to pay upfront deposits to each applicable utility company.
4. Leasehold Improvements: $2,000 to $140,000
- Rockbox Fitness’ estimates for your initial expense for leasehold improvements is based on the assumption that you will lease the space from which you operate your Studio.
- Rockbox Fitness’ standard franchise offering assumes that the Premises of your Studio will be around 3,000 to 3,500 square feet with an appropriate design and layout that allows the space to accommodate the appropriate training stations without substantial construction or demolition to the existing space.
- The low end of this estimate assumes that you will receive tenant improvement allowance from your landlord.
5. Initial Advertising Spend; Local Advertising Requirement: $20,000 to $32,000
- After your business opens, you will be required to spend the greater of (i) 5% of monthly Gross Sales on marketing your business, or (ii) $2,000 per month on local advertising.
- Although franchisees are only required to spend the greater of (i) 5% of monthly Gross Sales, or (ii) $2,000 per month on local advertising, Rockbox Fitness franchisees typically expend more.
6. Inventory, Furniture, Fixtures, and Equipment (Genesis Package): $114,293 to $128,300
- This estimate covers the equipment (Genesis Package and Elevate Package), furniture, fixtures, and other items such as décor, retail display, storage shelving, and similar items.
7. Computer Systems: $3,000 to $5,000
- You will be required to have one iPad, one desktop/laptop computer, and an all-in-one printer to operate your Studio.
8. Insurance: $300 to $3,000
- You are required to maintain certain insurance for the operations of the Studio. Your actual payments for insurance and the timing of those payments will be determined based on your agreement with your insurance company provider.
- Insurance premiums may be payable monthly, quarterly, semi-annually, or annually, based on the insurance company’s practices and your creditworthiness.
9. Signage: $8,000 to $10,000
- You are required to obtain and display signage for your Studio. The high end of this estimate assumes that you will obtain multiple signs.
10. Office Expenses: $500 to $1,500
11. Licenses and Permits: $500 to $1,200
- You must apply for, obtain, and maintain all required permits and licenses necessary to operate the Studio. The licenses will vary depending on local, municipal, county, and state regulations. All licensing fees are paid directly to the governmental authorities when incurred and are due prior to opening the Studio.
12. Dues and Subscriptions: $1,000 to $2,000
13. Business Planning and Miscellaneous Expenses: $1,000 to $3,000
14. Professional Fees (lawyer, accountant, etc.): $1,500 to $3,000
- Rockbox Fitness strongly recommends that you engage an accountant and a franchise attorney to advise you in your evaluation of the franchise Rockbox Fitness is offering.
15. Travel, Lodging, and Meals for Initial Training: $1,000 to $4,000
- Prior to opening your Studio, you must complete Rockbox Fitness’ Initial Training Program. Rockbox Fitness does not charge a fee for its Initial Training Program; however, you will incur travel and lodging costs associated with attending the Initial Training Program. You are responsible for the food, travel, and lodging expenses that you and your employees will incur when you attend the Initial Training Program, and the salary and benefit costs of your attendees.
- Costs vary due to distances from your location to Rockbox Fitness’ training facility and the quality of the food and lodging you choose. Other factors include seasonal variations in the price of travel and lodging expenses, general economic conditions, and your persistence in obtaining the best prices available. This estimate is for the cost for you and up to 3 additional employees to attend the Initial Training Program.
16. Additional Funds (for first 3 months): $25,000 to $50,000
- This includes any other required expenses you will incur before operations begin and during the initial period of operations, such as payroll, additional inventory, rent, and other operating expenses in excess of income generated by the business.
- In formulating the amount required for additional funds, Rockbox Fitness relied on the following factors, basis, and experience: (i) the development of a RockBox Fitness business by the franchisor’s affiliate; and (ii) the franchisor’s general knowledge of the industry.
17. Total: $234,993 to $463,900
- Your actual expenses of establishing and operating this business may vary from the estimates that Rockbox Fitness has set forth in this Item 7.
- Some states have laws that impose staffing or operational requirements that will significantly increase the amounts you will have to spend to open and operate your Studio.
- You should review this amount carefully with a business advisor or legal advisor before making any decision to purchase the franchise.
- Rockbox Fitness also recommends that you account for any potential inflation, discretionary expenditures, fluctuating interest rates and other costs of financing, the local market conditions, and overall economic conditions, all of which can be highly variable and can result in substantial, rapid, and unpredictable increases in costs.
- Rockbox Fitness does not offer financing for any part of the initial investment. The availability and terms of financing with third-party lenders will likely depend on the availability of financing generally, your credit-worthiness, policies of lending institutions concerning the type of business to be operated, and other similar factors.